How does HR quantify the cost of employee turnover?

HR can quantify the cost of employee turnover from the following aspects.

1. Recruitment expenses: the post of the resigned employee needs to be re-recruited, including recruitment advertising expenses, talent agency fees, participation in job fairs, interviews, training and other expenses;

2. Staff turnover cost: after employees leave their jobs, they need other employees to take over their jobs temporarily, which will increase their workload, reduce their efficiency, and may lose some customers and business opportunities;

3. Training expenses: the training and related materials received by the resigned employees need to be retrained, and the time for new employees to learn the introduction also needs to be paid;

4. Compensation cost: the company may need to pay corresponding economic compensation to the resigned employees, such as salary, annual leave, social security, welfare and other benefits;

5. Time cost: the company needs to solve a series of things after employees leave their jobs, such as the transfer of employee files, the adjustment of interpersonal relationships, and the work arrangements of other employees, which all take time.

Reason:

1. Understanding turnover costs enables enterprises to predict the turnover trend of employees and take timely measures to reduce the turnover rate;

2. Comparing the current turnover cost with the previous one, we can evaluate whether the business policy of the enterprise is correct, whether the effect is remarkable and whether it needs improvement;

3. Understanding turnover costs can help enterprises to establish more objective employment standards, clarify the responsibility and contribution of each employee to the enterprise, and make enterprises recruit and manage employees more scientifically.